My Apple Watch SE wont't Pair with my iPhone 15

Having difficulties with pairing Apple watch SE to iPhone 15. It used to be paired but the watch got fully reset and now when trying to pair again nothing happens when aligning camera with apple watch and the "set up manually" button cannot be pressed. The watch also shows at My watches in the app but has a spinning circle next to it that won't go away and the "unpair apple watch" button also isn't available. How to remove the watch from devices as I believe that could be the reason it doesn't allow to pair again even though the watch has been reset.

[Re-Titled by Moderator]